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COVID-19 and your 2020 taxes

One year later and there continues to be additional, extensive legislation for your 2020 taxes relating to taxes and economic relief for individuals and businesses in response to the COVID-19 pandemic. Since this is constantly evolving, you should verify all information by accessing the IRS, Treasury and Department of Labor websites for up-to-date changes.

TAX FILING and EXTENSION DEADLINES

The IRS has extended Federal income tax deadlines for individuals only until May 17, 2021. We have prepared a simplified table to help you understand the ramifications of the extension. Not all states have the same deadlines.

Extended from April 15 to May 17, 2021
  • 2020 Federal income tax filing deadline
  • 2020 Federal income tax payment deadline
  • Federal estimated payments remain due April 15, 2021
Balances paid on or before May 17, 2021
  • No penalties or interest accrue on balances due
Balances paid on or after May 17, 2021
  • Penalties and interest accrue on remaining unpaid balances.
Applies only to individuals automatically — no need to file an extension unless additional time is needed beyond May 17, 2021, to file.

State agencies may have different filing and payment deadlines. The states do not automatically adopt the Federal regulations; many have not done so. Some states have a provision to exclude penalties on balances paid by the extended deadline, but accrue interest from April 15 until the date payment is made.

ECONOMIC IMPACT PAYMENTS (EIP)

There have been three rounds of Economic Impact Payments, also referred to as stimulus payments. These payments were/are being made by direct deposit, check or debit card. Amounts were calculated based on which tax year you had filed when the payments were being made (2018 or 2019 for the first payment or 2019 for the second payment). STIMULUS CHECKS ARE NOT TAXABLE INCOME.

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AMERICAN RESCUE PLAN ACT (ARP)